Step 1: Organize Your Documents

If you are buying or refinancing a home

If you are salaried: provide two years W-2 and one month of pay stubs.
If you are self-employed : provide two years tax returns and YTD profit and loss statement.
If you own rental property, provide rental agreements and two years tax returns.
If you wish to speed up the approval process, please also provide three months bank statements for each bank, stock and mutual fund account.
Provide recent copies of any stock brokerage or IRA/401K accounts that you may have.
If you are applying for a cash-out refinance please provide a letter explaining what you plan to do with the proceeds.
If you choose to include income from child support and/or alimony, bring copies of court records of cancelled checks showing receipt of payment.
Provide a copy of divorce decree if applicable.
If you are NOT a US citizen, provide us with a copy of your green card (front & back).
If you are NOT a permanent resident provide us with your H-1 or L-1 visa.
Certificate of Eligibility DD 214 (VA loans only)

If you are applying for a home equity loan or line of credit

If you are salaried : provide two years W-2 and one month of pay stubs.
If you are self-employed: provide two years tax returns and YTD profit and loss statement.
If you own rental property, provide rental agreements and two years tax returns.
Provide a copy of the note on your first mortgage. This will normally be found in your closing loan documents.
Provide a signed letter explaining what you plan to do with the proceeds.
Provide a copy of divorce decree if applicable.
If you are NOT a US citizen, provide us with a copy of your green card (front & back).
If you are NOT a permanent resident provide us with your H-1 or L-1 visa.

Step 2: Get Pre-Qualified or Pre-Approved

Getting pre-qualified before you apply for a loan can help you understand how much you can borrow.

If you are buying a house, you may get pre-qualified or pre-approved. You can typically get pre-qualified over the phone or on the Internet in a few minutes. A pre-qualification is not as beneficial as a pre-approval where you have to go through a more rigorous process that includes verification of your credit, income, assets and liabilities. It is highly recommended that you get pre-approved before you start looking for a house.

This will help you:

Find out the maximum house you can buy, so you don't waste time looking for properties you cannot afford.
Puts you in a stronger position when you are negotiating with the seller, because the seller knows that your loan is already approved.
Helps you close quickly, since your loan is already approved.

Step 3: Shop Loan Programs and Rates

To shop for a loan you will need to:

Think about how long you plan to keep the loan. If you plan to sell the house in a few years you may want to consider an adjustable rate or balloon loan. On the other hand, if you plan to keep the house for a longer time, you may want to look at fixed rate loans.
Understand the relationship between rates and points. Points are considered to be prepaid interest and are tax deductible. Each point is equal to one percent of the loan. For example, 1 point on a $100,000 loan is $1,000. The more points you pay, the lower the rate you will get. However, most lenders put a cap on the amount you can "buy down" the rate.
Compare different programs. Shopping for a loan can be difficult. With so many programs to choose from, each of which has different rates, points and fees, it's hard to figure out which program is best for you. That's where an experienced mortgage broker can help you make a decision that's best for you.
Fill out the PickYourOwnRate.com form. Once you have an idea of the interest rate and loan program that best suits your needs make sure you fill out the PickYourOwnRate.com form so you have the piece of mind that you are truly getting the rate that you deserve.

Step 4: Apply for a Loan

Once you fill out the PickYourOwnRate.com form your information - along with the rate you have selected - will immediately be sent to an experienced mortgage professional in your area in order to start the loan approval process immediately.

The approval process involves verifying:

Your credit history
Your employment history
Your assets including your bank accounts, stocks, mutual fund and retirement accounts
Your property value

Based on your specific situation, additional documents or verifications may be required.

To improve your chances of getting a loan approval:

Fill out the loan application completely.
Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
Do not make any major purchases. Do not buy a car, furniture or another house until your loan is closed. Anything that causes your debts to increase might have an adverse affect on your current application.
Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please let your mortgage professional know.
Do not go out of town around the closing date. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney to authorize another individual to sign on your behalf.

Step 5: Obtain Loan Approval

Once all the required documents have submitted and the application process has been completed your mortgage professional will:

Submit the entire loan package to the lender.
Order the title work from the title agent.
Ensure the insurance policy is for the appropriate coverage amounts and that the policy takes effect on or before the date of the closing.
Follow up to the underwriter at the lending institution to ensure there are no additional documents needed.
Clear any necessary approval conditions with the underwriter.
Schedule the closing with the title agent and the lender.

Step 6: Close the Loan

After your loan is approved, you will be required to sign the final loan documents. This will normally take place in front of a notary public at either the title agent’s office or at your residence.

Be prepared to:

Bring a cashier’s check for your down payment and closing costs if required. Personal checks are normally not accepted.
Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify that the name and address on the loan documents are accurate.
Sign the loan documents.
Your loan will normally fund shortly after you have signed the loan documents. On refinance and home equity loan transactions involving your primary residence federal law requires that you have 3 days to review the documents before your loan transaction can fund.